The Interior Department’s third auction of acreage for offshore wind development was dubbed a resounding success by the federal agency, drawing a final bid of $8,701,098 for two lease areas totaling nearly 80,000 acres near Ocean City, Md. This result far outstrips the winning bids during the Bureau of Ocean Energy Management’s first two offshore wind energy area auctions; the first, for ocean area near Rhode Island and Massachusetts, resulted in a final bid of $3.8 million, and the second, for ocean area near Virginia, garnered $1.6 million.
A New Jersey appellate court has ordered the state Board of Public Utilities to take another look at an application seeking to build a $188 million demonstration wind farm off the Atlantic City coast, a proposal the BPU rejected in March. The coalition of developers that is proposing the wind farm, called Fishermen’s Energy, filed the appeal. The group had asked that the BPU reconsider its decision after the U.S. Department of Energy in May awarded $47 million toward the project’s construction, calling it “pioneering.”
The Oregon Department of State Lands (DSL) denied a key permit for a proposed coal export terminal yesterday, dealing a setback to companies who have long hoped to send U.S. coal across the Pacific Ocean. In announcing its decision on the Coyote Island Terminal, which was to be constructed near Boardman, Ore., on the Columbia River, the agency cited the more than 20,000 public comments it had received and wrote that the project “is not consistent with the protection, conservation and best use of the state’s water resources.”
Despite anemic installation figures in 2013, political uncertainty about the extension of renewable energy tax incentives and competition from low-cost natural gas — as well as other renewables — the U.S. wind energy industry remains set to bounce back in the next two fiscal years, according to a Department of Energy technology report released yesterday. The U.S. wind sector added merely 1,087 megawatts of new capacity in 2013, a 92 plunge from 2012 installation figures, but remained the second-largest wind market based on cumulative electrical capacity with 61 total gigawatts.
Energy companies so far have bid more than $10 million for the right to build wind farms in waters off the coast of Ocean City, Md., far eclipsing the highest bids in the Interior Department’s two previous offshore wind auctions held in 2013 off Rhode Island, Massachusetts and Virginia. And bids continue to roll in.
A Nevada wind farm has been forced to make changes after killing more bats than allowed under a deal with the federal government. The 152-megawatt Spring Valley Wind Energy project northeast of Las Vegas has adjusted its turbine operations at night to factor in bat migrations through the region. On nights with heavy bat activity, the turbines now kick in when wind speeds reach 11 mph, instead of about 7 mph, the facility’s owner said.
Traders betting on electric transmission constraints netted nearly $2 billion in the first quarter of this year. PJM Interconnection LLC’s market alone yielded $1.1 billion in profits for traders — three times last year’s total, the operator said. Other big payouts were in New York, California and Texas. More traders are looking to the grid operator-run transmission-rights markets, which power market deregulation created. Julia Sullivan, co-head of the energy regulation and enforcement practice at law firm Akin Gump Strauss Hauer & Feld LLP, said the firm has seen a “pretty steady drumbeat of clients” interested in jumping into those markets.
The U.S. continues to be a global leader in wind energy, ranking second in installed capacity in the world, according to two reports released today by the Department of Energy. Wind power is a key component of the nation’s all-of-the-above strategy to reduce carbon pollution, diversify our energy economy, and bring innovative technologies on line. With increasing wind energy generation and decreasing prices of wind energy technologies, the U.S. wind energy market remains strong and the U.S. is moving closer to doubling renewable electricity generation from energy resources like wind power yet again by 2020.
A Department of Energy report out today suggests the wind industry is on an upward trajectory thanks to last year’s brief renewal of a key tax credit — and the likelihood it could continue to thrive thanks to a combination of technological improvements and the effect of U.S. EPA rules on power plant emissions, among other factors. DOE’s annual wind technologies market report predicts capacity will increase at least through 2015 as developers finish projects they started last year to qualify for the production tax credit (PTC), the industry’s primary federal incentive. However, the pace of installations over the next two years is not expected to reach the record set in 2012, and the PTC’s expiration at the end of last year creates significant uncertainty beyond 2016.
Oklahoma is the nation’s fourth-largest generator of wind energy. But wind developers in the northeast corner of the state, where the Tallgrass Prairie Preserve lies, are up against stiff opposition from an unlikely pair of allies: environmentalists and oil interests. Bob Hamilton, director of the Nature Conservancy’s Tallgrass Prairie Preserve, has been fighting to block construction of a 68-turbine wind farm.